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The new rules of competition require managers to start by asking what's important to their customers and where the company can make new money. Then, they need to reinvent their businesses to create the next profit zones.

Attributed to Slywotzky and Morrison in: John A. Byrne (1998) "Go where the money is" at businessweek.com. Jan. 15, 1998.

Adrian Slywotzky believes the Internet will overturn the inefficient push model of supplier-customer interaction. He predicts that in all sorts of markets, customers will use choiceboards—interactive, on-line systems that let people design their own products by choosing from a menu of attributes, prices, and delivery options. And he explores how the shifting role of the customer—from passive recipient to active designer—will change the way companies compete.

Twenty years ago, the business world was taken by surprise when the work pyramid was up-ended. Suddenly customers were on top and a flattened corporate hierarchy made front-line workers responsible for understanding and satisfying the customer’s every whim. Today, we’re poised for the natural sequel to that revolution. It’s time to focus on keeping workers satisfied — or at least engaged in their work.

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Doctors, chess grand masters and football quarterbacks share a trait: the ability to recognize patterns and learn from them. A doctor can connect symptoms to causes and use that to make a diagnosis and offer a prescription. Top quarterbacks and grand masters can sense the shape of unfolding play, and profit from that knowledge.
Great managers are also skilled at pattern recognition. Every industry is reshaped by patterns of strategic change that can dramatically shift profit and power.

p. 2.

Today, as change speeds up, it’s even more important to anticipate how your company’s strategic landscape is changing. It won’t help you to predict the future with 100% accuracy. But it will prepare you to exploit change.

Adrian J. Slywotzky, David J. Morrison, and Bob Andelman (2007) The profit zone: How strategic business design will lead you to tomorrow's profits. Random House Digital, Inc.

The number one problem in business today is profitability. Where will you be allowed to make a profit in your industry? Where is the profit zone today? Where will it be tomorrow?

p. 3.

The profit zone is the area of your economic neighborhood where you are allowed to earn a profit. To reach and operate in the profit zone is the goal of every company.

p. 3.

Market share was the grand old metric, the guiding light, the compass of the product-centric age. Companies focused on improving their product and building economies of scale. This product-centric thinking led to the battle cry: "Get more market share and the profit will follow."

p. 3.

"Be in high-growth markets." In the old economic order, in the age of market share, volume growth was a guarantor of success. Growth was what we were taught to pursue. It created higher profits for all, including market share laggards, companies with poor business designs, and companies that were poorly managed. A rising tide raised all boats. One manager articulated the classic view: "There are no management problems that volume growth can't solve. Even if we manage poorly, rising revenue helps cover the mistakes we made."